Concerns about Bitcoin’s long-term prospects often spark a dismissive response, but the reality is that the cryptocurrency’s future depends on more than just holding onto it. Bitcoin’s consensus process relies on two key variables: economic actors and miners. To maintain its censorship resistance and enable freedom, users must actively use Bitcoin, not just hold it.
The Importance of Active Use
Bitcoin’s consensus rules require two things: users who value them and miners who will mine them. When users buy blockspace, they attract miners with revenue beyond the block subsidy, giving them influence over miners. The more users generate fees, the more “power” they have over miners. This influence is crucial in the event of disagreements over consensus rules arise.
The Risks of Institutional Adoption and Regulatory Encroachment
The threat of institutional adoption and regulatory encroachment poses a significant risk to Bitcoin’s long-term prospects. If users stop using Bitcoin and only hold it, regulations can influence miners and brokers, potentially vetoing useful changes and pushing damaging ones. To counteract this, users must actively use Bitcoin for more than just holding and investing.
Scalability and Its Role in Empowering Users
Scalability is essential in allowing more people to interact with the system, exerting their influence. The more users actively use Bitcoin, the more influence they collectively have over consensus. This is why building more businesses, consuming more blockspace, and using payment networks like Lightning or Ark are crucial.
A Call to Action
Bitcoiners must be active, not passive. They must transact, build, and consume blockspace to maintain their influence over consensus rules. The demand for blockspace must come from diverse sources, not just massive institutions subject to regulatory influence. Bitcoin is a “use it or lose it” thing, and it’s up to its users to ensure its future.
Source: Bitcoinmagazine.com
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